Over the next three to five years, 62% of oil and gas executives worldwide say they will invest more than they currently do in digital, according to a recent Microsoft and Accenture survey.

Oil and gas companies will use IoT devices and their associated analytics to survey land for new potential drilling sites and extract the oil from the ground. Among oil and gas executives, 89% believe they can leverage analytics to improve business practices, according to Microsoft and Accenture.

We estimate the number of devices used on oil extraction sites — primarily wells — will increase at a 70% compound annual growth rate (CAGR). The devices will primarily be internet-connected sensors used to provide environmental metrics about extraction sites.

By fully optimizing the IoT solutions available, an oil and gas company with $50 billion in annual revenue could increase its profits by nearly $1 billion, according to a Cisco study.